China's trade threats deal fresh blow to world stocks2019|01:31
Calm after the storm, but it was short lived. Europe's bourses opened with some modest gains on Thursday (August 15) before reversing after China threatened to retaliate against U.S. tariffs. It adds to a string of red alerts on recession this week. Chief amongst those: the inverted yield curve in U.S. bond markets. A signal seen before every recession in the last half century where long-term bond yields slip below short-term, as investors pile into safe havens. And what a storm for Wall Street. All three main indices lost around 3% before a wave of anxiety moved on to the Nikkei. It shed 1.2% and Asia's other key markets lost ground. Oil markets have also borne the brunt, benchmark Brent crude slipping further below $60 a barrel after a sharp drop. The drop for analysts is in sentiment, as they count the cost of U.S. trade policy.